Local Rule RULE 2014-1: APPLICATION TO EMPLOY PROFESSIONAL PERSONS
Bankr. D. Mass. — General rule
RULE 2014-1. APPLICATION TO EMPLOY PROFESSIONAL PERSONS
(a) (a) Application and Statement An application of a debtor (other than a chapter 7 debtor), debtor-in-possession, estate representative, or committee elected under 11 U.S.C. § 705 or appointed under 11 U.S.C. § 1102 to employ any professional person, including an attorney, accountant, appraiser, broker, auctioneer, consultant, or agent, shall include all of the information required to be provided by Fed. R. Bankr. P. 2014(a). . In addition, in the verified statement accompanying the application, (the "Statement"), the person to be employed (hereinafter the ""Professional"") shall make the following representations and disclosures under penalty of perjury in accordance with section (c)::
(1) Neither I nor any member of my firm holds or represents any interest adverse to the estate of the above-named debtor.
(2) My and my firm's connections with the debtor, any creditor, or other party in interest, their respective attorneys and accountants are as follows:
(3) Include the applicable statement: • I am and each member of my firm is a "disinterested person" as that term is defined in 11 U.S.C. § 101(14). • (3This case is a case under subchapter V of chapter 11 and I am a professional proposed to be employed by the debtor. The only reason that I or any member of my firm is not a disinterested person is because one of us holds a claim against the debtor. Notwithstanding, I am not disqualified for employment because the claim does not exceed the amount in 11 U.S.C. § 1195.
(4) I have not agreed to share with any person (except members of my firm) the compensation to be paid for the services rendered in this case, except as follows:
(4
(5) I have received a retainer in this case in the amount of $_______, which sum, upon information and belief, was generated by the debtor from:
(5________________________________________________________________
(6) I shall amend this statement immediately upon my learning that (A) any of the within representations are incorrect or (B) there is any change of circumstance relating thereto.
(67) I have reviewed the provisions of MLBR 2016-1.
(b) Clarifying Terms
(1) Connections and Relationships For the purposes of subsection (a)(2) and 11 U.S.C. § 101(14), "connections" and "relationships" shall include, without limitation:
(A) the Professional's representation of the debtor or any affiliate of the debtor, as that term is defined in 11 U.S.C. § 101(2), or any insider of the debtor, as that term is defined in 11 U.S.C. § 101(31), at any time;
(B) the Professional's representation of a creditor against the debtor, or any insider or affiliate of the debtor, at any time;
(C) the Professional's representation of a creditor on a regular basis or in connection with a substantial matter;
(D) the Professional's representation of or by, or employment of or by, another authorized Professional specifically in connection with this case, or on a regular basis or in connection with a substantial matter in another case; and
(E) a family affiliation to the third degree of consanguinity or marital relationship between the Professional or the member(s) of the Professional's firm who will actually render services and any party in interest (or officer, director, or shareholder of such party) or other Professional authorized to be employed in the case.
It shall be the duty of the Professional to make a preliminary inquiry as to such connections and relationships among the members and employees of the Professional's firm.
(2) Source of Funds For the purposes of subsection (a)(4), the Professional should disclose whether the funds were generated by the debtor from operations, salary, wages, other income, a loan, or capital contribution. If the source is a loan or capital contribution and such loan (other than an advance on a continuing line of credit) or capital contribution was made to the debtor within ninety (90) days prior to the filing of the petition, the identity of the lender or investor/stockholder and the terms of repayment shall be disclosed, as well as any claims by and between the debtor and the lender or investor/stockholder.
(c) Form of Statement The Statement accompanying the application to employ a Professional person shall take the form of an affidavit dated and signedthe Professional shall date and sign the affidavit under penalty of perjury by the person to be employed, and above such signature the affiantProfessional shall include a sworn declaration as provided in 28 U.S.C. § 1746, which states: ""I declare (or certify, or verify, or state) under penalty of perjury that the foregoing is true and correct."."
(d) Effective Date If the Court approves an application for the employment of a Professional person, such approval shall be deemed effective as of the date of the filing of the application. However, if such application is filed within fourteen (14) days from the later of case commencement or the date the Professional commenced rendering services, Court approval shall be deemed effective commencing the date that services were first rendered. Approval shall not be otherwise retroactive absent extraordinary circumstancesan order of the Court.